The formation and transmission chain of altcoin price increases is as follows:
1. Bitcoin Breakthrough: Bitcoin drives the overall market upward, establishing the market's foundation.
2. Ethereum Trend: Ethereum breaks through its highs, amplifying market risk appetite, becoming the key to the start of the altcoin season.
3. Altcoin Season Begins: When Ethereum rises and drives mainstream assets stronger, funds begin to flow into high-risk altcoins.
Transmission chain:
Bitcoin → Ethereum → Large-cap coins → Mid and small-cap coins → Various altcoins skyrocketing → Bull market ends, enters bear market [kneeling][kneeling]
Signs of the start of altcoin season:
Emerging projects: such as SUI, etc.
MEME coins and air coins: such as PNUT, PEPE, VIRTUAL, etc.
Undervalued old altcoins: such as XRP, XLM, TRX, OM, etc.
With the crazy rise of altcoins, market enthusiasm surges, which also becomes a warning signal for a possible market reversal.